UNIT OVERVIEW

This unit connects mathematics to real money decisions. You will learn how savings grow, how loans work, and how to use logarithms to solve financial problems. These skills will help you throughout your life—whether you're saving for studies, buying a car, or planning for the future.

By the end of this unit, you will be able to:

• Calculate future values of savings plans using the future value annuity formula
• Determine present values of loans and calculate monthly repayments
• Use logarithms to find how long investments take to reach target amounts
• Analyse and compare different investment and loan options
• Calculate outstanding balances on loans at any point during repayment
• Explain why pyramid schemes always fail mathematically
• Apply sinking fund calculations to asset replacement scenarios

Where you will use this:

• Saving for a goal: Calculate how much to save monthly to reach a target amount
• Buying a car or home: Compare finance options and understand what you're paying
• Student loans: Know exactly what your repayments will be after studying
• Spotting scams: Recognise when "investment opportunities" are too good to be true

---